Gov’t to Offer Financial Support for Hanjin Shipping’s Contractors

Hanjin Shipping has a total of 457 contractors here and their combined outstanding receivables reach 64 billion won (US$57 million). (image: Wikimedia)

SEOUL, Sept. 5 (Korea Bizwire) –South Korea said Monday it will extend financial support for the contractors of Hanjin Shipping, the nation’s largest container shipping line under court receivership.

The government plans to use funds from the newly-allocated supplementary budgets to help those firms, especially small and medium-sized ones with relatively good financial health but troubled by the Hanjin crisis, according to Yim Jong-yong, chairman of the Financial Services Commission (FSS).

Hanjin Shipping has a total of 457 contractors here and their combined outstanding receivables reach 64 billion won (US$57 million).

South Korea’s two policy lenders — the Korea Development Bank and the Industrial Bank of Korea — will roll over maturing loans to some of the companies and provide special credit guarantee, Yim told reporters.

On the household debt problem, the top financial regulator said the related authorities will “faithfully” implement the package of inter-agency measures announced on Aug. 25 that revolve around the control of new apartment supply to reduce mortgage loans.

There has been widespread skepticism over the effectiveness of the planned measures with housing prices continuing to soar even after the announcement.

Household credit jumped 11.1 percent on-year to an all-time high of 1,257.3 trillion won as of end-June amid prolonged low interest rates and strong demand for new apartments, according to official data.

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